According to nationwide vehicle registration data, more than 265,000 electric two-wheelers and 176,000 electric three wheelers were sold in the country during fiscal 2024-25.
A senior government official told ET that around 80-90% of these electric two-wheelers are expected to be eligible for subsidy under EMPS.
With an outlay of INR 500 crore, the scheme aims to subsidise sales of 372,000 electric two- and three-wheelers from April 1 till July 31. While the number of electric three-wheelers being sold is also high, historically these have not been compliant with norms for being subsidised under earlier government schemes.
According to heavy industries ministry data, automakers have already sought subsidies for selling 35,073 electric vehicles starting April 1, 2024. This is less than a tenth of the total electric two- and three- wheelers being subsidised under the scheme. "Subsidy claims can be raised by the EV companies up to 180 days from the date of e2w and e3w sales. We expect the number of claims to significantly go up under EMPS as most of the vehicles being sold are likely to be compliant," the official said.
Hero MotoCorp, Bajaj Auto, TVS Motor, Ather Energy, Ola Electric, and Kinetic Green are among EV makers who have got approvals to sell vehicles and claim EMPS subsidy. Under EMPS, EV companies can get subsidies worth INR 10,000 per two-wheeler and INR 50,000 per three-wheeler sold.
EMPS was introduced to continue supporting sales of clean energy powered vehicles after the lapse of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) subsidy scheme on March 31, 2024. The next scheme for supporting EV sales in the country is expected to be unveiled in the Union Budget 2024-25 on July 23 and will be applicable from August 1.
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